L Dean Davidson

Dear friends in Real Estate,

Here's to a prosperous New Year! There is a lot going on here as systems and operations transition from Bradford Mortgage Company to NewBridge Bank. I will keep you posted on important updates as they happen.

Do you have an open house planned for your listing? Want a financing representative available to discuss loan options with your prospects? I am eager to support you!! Please contact me with the listing information and date you are having the event. I will promptly let you know if I can attend.

Here's a sample of Primary Home Purchase money rates today, up to 0+1, with escrows for a borrower with median credit of 720-760. These are subject to vary based on loan amount, occupancy, LTV, credit quality and other factors. In the next few weeks Jumbo, FHA, VA, USDA and Construction/Perm will be available as well.

Conforming (up to $417K, using 250K as sample loan amt)

30 yr fixed, 5% down 4.875%

15 yr fixed 4.375%

5/1 ARM, 30 yr am 3.875%

30 yr fixed, 3% down 5.500%

Compliments of Ashleigh Sumlin, Bradford Mortage Company, Charlotte NC, 704-307-9908

WASHINGTON (Reuters) - Fannie Mae plans to raise minimum credit score requirements next month and limit the amount of overall debt that borrowers can carry relative to their incomes, The Washington Post reported on Thursday.
Starting December 12, the automated system that the government-controlled mortgage finance company uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850, the newspaper reported. Previously, the cut-off was 580.
Also, for borrowers with a 20 percent down payment, no more than 45 percent of their gross monthly income can go toward paying debts, the newspaper said.
A Fannie Mae spokesman told the newspaper that the limits reflect the company's recent experience.
Loans to people with credit scores below 620 fell seriously behind at a rate approximately nine times higher than other loans purchased in the same period, Fannie Mae spokesman Brian Faith said. Loans taken out by borrowers with lots of debt also suffer higher levels of serious delinquency, he said.
"It's not enough to help borrowers buy a home -- we must also ensure that they can stay in the home over the long term," Faith said in a statement to The Washington Post.

The good news is that home sales, pending contracts, and closings are on the rise. As I said before we hope this is a light at the end of the tunnel, and I don't mean a freight train. Our Market Center has had two very good months, for both gross commissions earned and profitability.

One of the things I have become aware of is the increased building activity among homebuilders in the Waxhaw, NC and Weddington, NC areas, as well as the areas of Lancaster and York Counties just next door to Charlotte. This is going to be a key factor in getting the economy rolling again, and some relief to the unemployment numbers.

One area that you, if you are a near future buyer, should be investgating is Waxhaw NC. Waxhwaw is located at the south end of Hwy 16, due south of Charlotte. It is 6 miles south of Weddington, at Hwy 84, and just 9 miles south of the I-485 loop. Check you map for reference.

Waxhaw is an old, historic, little railroad communtity with an original landmark footbridge over the rails, in between N. Main and S. Main Streets. There are several antique shops in Waxhaw, and it is becoming home to artist and craftsmen of all sorts, and has several small festivals every year to celebrate its heritage, and put its wares on display. There is even an annual Highland Games, with a gathering of the Clans.

Some of the most attractive land positions in Union County are located around Waxhaw, featuring planned communities with wonderful amenities, and surrounded by the best schools in the State of North Carolina. I know because I live down there, and my wife is an education professional in the Union County School System.

If you are surfing the internet and you come across neighborhoods in Waxhaw, Weddington, Marvin and Wesley Chapel, take pause. You may be home. Communties like Lawson, Millbridge, Edenmoor, Skyecroft, Weddington Chase are those you will want to visit.

All of this quaint, near-country living is within 10 miles of I-485 and 15 miles of some of the most desired shopping venues in the Charlotte and Ballantyne Area. There are also several equestrian and golf communities if those activities have special appeal to your family. And because the area is growing, so are the entertainment venues, like excellent restaurants and food finds of all kinds.

You owe it to yourself to meet this area personally, and I am one of its own.

POSTED BY THE WALL STREET JOURNAL TODAY 10/29/2009

Wall Street Journal 10/29/09

WASHINGTON -- Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.

Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.

The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.

____________________________________________________________________________

I will continue to post updates on this piece of legislation until resolution is achieved or died.

On November 30 the $8,000. Federal Tax Credit for first time homebuyers will expire. This stimulus has helped the real estate and building industries the last several months, as it has allowed markets to reduce some of their inventories, and brought action to buy from many who were sitting on the fence to see what happens with interest rates and prices. The problem was the limited scope of the program.

I've written previously that this stimulus should have been offered to any buyers regardless of of their status, and the price range of the home purchase (as long as it primary residence, or home used by a family member, such as inlaw or dependent in college). This would have relieved much more inventory and at fairer prices to the sellers, allowed people who wish, or need, to relocate to sell their homes, and created a demand once more for new construction, putting many layed off construction and related trade workers back on the payrolls, reducing the growth of unemployment overall.

This still may happen, and that should be good news. There has been legislation introduced in several forms, which extends the current program another 6 monthe to a year, and more importantly, broadens its scope to include the homebuyers who are not first timers, and are looking to move up or move out. If this legislation does not pass, and the current program expires as scheduled, the gains made over the last several months will be eclipsed by growing unemployment, which is already dangerously close to the 10% mark.

If you are reading this post, please be pro-active and contact your Representatives and urge the passing of this legislation. It has more long reaching effect on the nations economy right now than anything else that can be on the table. Our voice, whether raised with pen or phone, is the most powerful tool the average citizen has at their disposal. Let's use it.